The Following Information Relates to a Company's Aggregate Production Planning

question 70

Multiple Choice

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a level production strategy is used the number of workers required each quarter is

• A) 50.
• B) 75.
• C) 85.
• D) 125.

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Definitions:

Units-Of-Production Depreciation

A depreciation method that allocates expense based on the actual usage or production of an asset.

Salvage Value

The anticipated worth of an asset at the conclusion of its effective life.

Service Life

The estimated use period or duration over which an asset is expected to be economically usable by one or more users, with proper maintenance and repairs.

Operational Use

The application or employment of resources, processes, and procedures to perform its intended functions or tasks within a business.